"Happy Establishment-Day RBI"

India's central banking institution, The Reserve Bank of India was established on April 1st, 1935

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➨ Did you know :

The logo is a Tiger passing near to a palm tree. The same was used by East India Co at 19 th Century (queen victoria coin) . Instead of tiger previously it was Lion.

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✪ Functions of RBI

► Bank of Issue :

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department.

► Monetary authority :

The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments.

► Managerial of exchange control :

The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

► Issuer of currency :

The bank issues and exchanges or destroys currency notes and coins that are not fit for circulation. The objectives are giving the public adequate supply of currency of good quality and to provide loans to commercial banks to maintain or improve the GDP. The basic objectives of RBI are to issue bank notes, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves.

► Banker of Banks :

RBI also works as a central bank where commercial banks are account holders and can deposit money.RBI maintains banking accounts of all scheduled banks.